Vivos Therapeutics Bets on Sleep Center Expansion Amidst Shifting Market Dynamics

NEW YORK, NY – November 19, 2025

Vivos Therapeutics (NASDAQ: VVOS) is undergoing a significant transformation, pivoting from a largely product-dependent model to a more integrated healthcare provider with direct patient access. The company, specializing in non-invasive treatment for sleep apnea, is set to report its Q3 2025 earnings after market close today, and analysts are keenly watching its progress in executing this new strategy. While the transition has presented financial challenges, the company believes its recent moves position it for sustainable growth in a competitive market.

A Shift in Strategy: From Product to Provider

Vivos has historically focused on selling its Complete Airway Repositioning and Expansion (CARE) devices to dentists and orthodontists. However, recognizing the limitations of this approach, the company embarked on a strategy to acquire and operate its own sleep centers. The most notable step in this direction was the acquisition of The Sleep Center of Nevada (SCN) earlier this year. This acquisition isn’t merely an expansion of revenue streams, but a fundamental change in how Vivos reaches patients.

“The idea is to control the entire patient journey, from diagnosis to treatment and follow-up,” explains one industry observer. “By owning these centers, Vivos can ensure that patients receive the full benefit of the CARE technology and receive comprehensive care.” The company anticipates that each Sleep Optimization Team within SCN locations will generate over $500,000 in monthly net collections, with contribution margins exceeding 50%.

Beyond acquisitions, Vivos is also developing a model for affiliating with existing sleep practices, offering them access to the CARE technology and providing support services. This two-pronged approach aims to expand Vivos' reach without incurring the full costs of acquiring and operating additional centers.

Navigating a Competitive Landscape

The sleep apnea treatment market is dominated by large players like ResMed and Philips Respironics, primarily focused on CPAP machines. While CPAP remains the dominant treatment, adherence rates are notoriously low, creating opportunities for alternative therapies like Vivos' CARE technology. “Patients are increasingly seeking more comfortable and convenient treatment options,” notes a healthcare analyst. “Oral appliance therapy, in particular, is gaining traction as a viable alternative.”

Vivos' CARE devices are FDA-cleared for adult and pediatric patients with varying severities of obstructive sleep apnea, a distinction that sets it apart from many competitors. Clinical trials have demonstrated significant improvements in AHI scores and symptom relief among patients treated with the CARE technology. However, competing with established players with extensive marketing budgets and distribution networks remains a significant challenge.

“The oral appliance market is fragmented,” one source stated. “Vivos needs to differentiate itself through clinical evidence, patient satisfaction, and a strong brand identity.” The company’s focus on direct patient care through its acquired sleep centers is a key part of this differentiation strategy.

Financial Performance and Future Outlook

Vivos’ financial performance in recent quarters reflects the challenges and opportunities associated with its strategic transformation. While product revenue has continued to grow, the company has experienced increased operating expenses related to the SCN acquisition and the transition to a provider-based model. Full year 2024 revenue increased by 9% to $15.0 million, however, net loss remained significant at $11.2 million.

Recent quarterly results revealed a decline in overall revenue, largely attributed to a shift away from reliance on VIP enrollments. Q2 2025 operating losses increased substantially due to SCN-related costs. The company is banking on its acquired sleep centers to drive revenue and profitability in the coming quarters. Early indications are promising, with SCN contributing significantly to diagnostic testing and service revenue. However, sustained growth will depend on successful integration and expansion of these centers.

“The next few quarters will be critical,” states a financial analyst. “Vivos needs to demonstrate that its strategy is translating into improved financial performance.” The company acknowledges the need for additional funding to support its growth initiatives and is exploring various financing options. The company remains optimistic about achieving cash flow positivity by the end of 2025, a critical milestone for its long-term sustainability.